Data#3 Limited

DTL Details
Secured a contract for the education department: Data#3 Limited (ASX: DTL) has successfully secured a large contract for the Department of Education and Training (DET) in Queensland. The multi-year contract is to refresh up to 12,000 HP devices, as a part of the Queensland Government's commitment to support the future of teaching and learning. The group even delivered a solid FY 16 performance with a 13% rise in the total revenue. There is a strategic shift in the business mix.

 

FY 16 Financial Performance (Source: Company Reports)
 
The Product gross margin decreased fractionally from 9.3% to 9.2%, delivering a 10.6% increase in product gross profit and the Services gross margin fell slightly as mix changed but on higher revenues reported a 15.9% increase in services gross profit. The group now expects to achieve first half FY17 NPBT of $7 to $8.5 million. Meanwhile, DTL stock rose over 62.25% in the last six months (as of November 18, 2016), and still the stock has a lucrative dividend yield. We give a “Hold” recommendation on the stock at the current price of – $ 1.70

 
DTL Daily Chart (Source: Thomson Reuters) 

Collection House Limited

CLH Details
Efforts to stabilize the core collections business: Collection House Limited (ASX: CLH) reported a 17% fall in the net profit after tax to $18.6 million in FY 16, including the one-off proceeds of a debt ledger sale. On the other hand, CLH is focusing on stabilizing the core collections business through productivity and efficiency initiatives for FY 17 and also on growing the existing business and new subsidiaries.

 

FY 16 Financial Performance (Source: Company Reports)
 
CLH stock is also available at attractive valuations with the stock trading at a strong dividend yield and a cheap P/E. The stock has surged 6.9% in last five days (as of November 18, 2016). We give a “Speculative Buy” recommendation on the stock at the current price of – $ 1.40

 
CLH Daily Chart (Source: Thomson Reuters) 

Money3 Corp Limited

MNY Details
Expanding debt flexibility: Money3 Corp Limited (ASX: MNY) has drawn down a further $10 million of funding under its existing debt facility, that has taken the total drawn down amount of this facility to $30 million. This additional funding would lead to the ongoing growth in the secured automotive loan business particularly with traditionally higher demand over the Christmas period.

 

FY 16 Financial Performance (Source: Company Reports)
 
On the other hand, MNY reported a 44.4% growth in the Net Profit after Tax to $20.1m in FY 16, which has exceeded its prior profit guidance of $19 million. The revenue grew by 40.0% to $96.7m. Moreover, MNY is expecting to achieve NPAT of $26m for FY17. MNY stock rose over 84.78% in last six months (as of November 18, 2016) and still available at a low P/E. Accordingly, we give a “Hold” recommendation on this dividend yield stock at the current price of – $ 1.68

 
MNY Daily Chart (Source: Thomson Reuters) 

Paragon Care Ltd

PGC Details
On track to witness strong earnings growth: Paragon Care Ltd (ASX: PGC) has completed the acquisition of Electro Medical Group Pty Ltd, for $3.9 million in shares and cash. The acquisition would expand the group’s penetration across Australia and New Zealand in the health and aged care sector. Moreover, this would generate significant sales synergies over coming years when combined with PGC’s existing service and maintenance business. The transaction is modestly EPS accretive in FY17.

 

Financial Performance (Source: Company Reports)
 
The group reported first quarter FY17 EBITDA up 12% on a like-for-like basis over the previous quarter and is on track to witness strong earnings growth. The stock is nearing its 52-week high price while we give a “Hold” recommendation on the stock at the current price of – $ 0.87

 
PGC Daily Chart (Source: Thomson Reuters) 

Lindsay Australia Limited

LAU Details
Uncertainty prevailing: Lindsay Australia Limited (ASX: LAU) in FY 16 reported 30.9% growth in the net profit after tax (NPAT) to $8.072 million due to the Lindsay Fresh Logistics improved contribution to the integrated logistics chain. However, FY16 NPAT includes one off $735,000 (after tax) positive contribution from settlement of a legal case. Additionally, for the first three months of FY 17, the transport revenue is equivalent to the same period last year.
 

FY 16 Financial Performance (Source: Company Reports)
 
The floods in South Australia and Victoria, along with loss leading pricing by the main competitor have affected the first three months’ results. Rural sales for the first three months have increased 16.7% on comparable periods last year. In addition, LAU expects the half year result to be comparable with the same period last year. As a result, LAU stock fell over 15.05% in the last three months (as of November 18, 2016). We give an “Expensive” recommendation on this dividend yield stock at the current price of – $ 0.40

 
LAU Daily Chart (Source: Thomson Reuters) 

Dicker Data Ltd

DDR Details
New distribution partnerships: Dicker Data Ltd (ASX: DDR) has been appointed as Microsoft surface distributor in Australia. The group also, for the Australian market, has taken the new distribution partnerships with BitTitan, SkyKick, Intralinks, Maaxcloud, xRM, Corent Technology and Gumbaya with regard to a range of cloud products and services, which will enable the resellers to enter and capitalize on the growing cloud market. This move would enhance the group’s subscription revenue and the future growth. DDR’s first half FY16 revenue also grew 11.1% on a year-on-year basis while net profit after tax jumped up 13.4%. Meanwhile, stock rose over 24.86% in the last three months (as of November 18, 2016). We give a “Hold” recommendation on the stock at the current price of – $ 2.29

 
DDR Daily Chart (Source: Thomson Reuters)

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